Volkswagen AG is internationally known as the Volkswagen Group and is one of the leading manufacturers of automobiles and commercial vehicles in the world. The company operates in four segments: passenger cars, commercial vehicles, power engineering, and financial services. The group operates 122 production plants in 20 European countries and a further 11 countries in the Americas, Asia, and Africa. The Volkswagen Group sells its vehicles in 153 countries, and its brands include It provides its products under the Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, Bugatti, MOIA, and TRATON. With its brands, Volkswagen has robust presence in all relevant markets around the world. The passenger cars segment develops vehicles and engines; and produces and sells passenger cars and related parts. The commercial vehicles segment develops, produces, and sells light commercial vehicles, trucks, and buses; and offers parts and related services. The power engineering segment develops, produces, and sells large-bore diesel engines, turbo compressors, industrial turbines, and chemical reactor systems, as well as gear units, propulsion components, and testing systems. The financial services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles and turbomachinery.
Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE, which holds a stake of 53.1% of the ordinary shares. The company offers spare parts, sub-assemblies, and other technical products. Porsche SE consults and provides technical assistance services for the development and manufacturing of vehicles, engines, and other related technical and economic activities.
List of Companies under Volkswagen AG:
Volkswagen AG acquired Auto Union GmbH from Daimler-Benz, which produces Audi vehicles. The four rings that comprise the Audi logo represent the four car companies: Audi, DKW, Horch, and Wanderer that banded together to create Audi’s predecessor. From the A3 sedan to the Q5 crossover SUV and the TT roadster, Audi is a popular luxury car brand across the globe.
Automobili Lamborghini S.p.A.
The company is wholly owned by Audi AG (acquired in 1998) and produces a less number (3,000) of niche vehicles each year
MAN S.E. is a Munich-based company founded in 1758 and acquired by Volkswagen AG in 2011. In 2016, the company delivered 102,000 vehicles and generated just over 5% of Volkswagen’s total revenue.
Scania AB is a 125-year-old company headquartered in Sweden, which operates production facilities in 14 countries. It was acquired by Volkswagen in 2008.
Skoda Auto A.S.
It has been a part of the Volkswagen Group since 1991
Bugatti Automobiles S.A.S.
Volkswagen AG also acquired this legendary Italian sports car manufacturer in 1998. The company designs passenger cars, sports vehicles, and utility vans, as well as supplies spare parts.
Ducati Motor Holding S.p.A.:
Is wholly owned subsidiary of Lamborghini, and has been part of the Volkswagen Group since 2012. The company designs and markets motorcycles, racing motorcycles, spare parts, accessories, and apparels, including suits, jackets, gloves, helmets, boots, protective garments, T-shirts, caps, and other items. It produces around 57,000 motorcycles each year.
Bentley is headquartered in Crewe, England, and has been part of the Volkswagen Group since 1998. Volkswagen invested a total of US$ 2 Billion in Bentley to keep the luxury brand relevant and top-of-mind with wealthy patrons.
Volkswagen Commercial Vehicles
Volkswagen Commercial Vehicles (VWCV) has delivered 215,000 vehicles of the Caddy, Transporter, Amarok, and Crafter series to customers all over the world till May 2019
SEAT is a 60-year-old Spanish automaker acquired by Volkswagen in 1986. The company develops its own cars in-house, and has been producing over 500,000 units a year, and sold around 20 Million cars to date.
Skoda Auto A.S.
The company is a part of Volkswagen Group since 1991. ŠKODA delivered 104,900 vehicles to customers worldwide in May 2019, and this represents a decline of 6.6% as compared to the previous year (May 2018: 112,400 vehicles). ŠKODA produces over one million vehicles per year, and is present in over 100 markets worldwide. Like Volkswagen, Škoda Auto specializes in selling family-friendly sedans and compact cars.
In April 2019, Volkswagen Group announced plans to merge its three Indian passenger vehicle subsidiaries – Volkswagen India, Volkswagen Group Sales, and Skoda Auto India – under one umbrella. The merger is intended to improve the efficiency of the existing synergies in the company in terms of usage of resources.
In May 2019, the company launched its special CUP edition across the Polo, Ameo, and Vento carlines. The special CUP edition reflects the fever of cricket by adorning stylish new leatherette seat covers and chrome badge
In June 2019, Volkswagen AG is invested around US$ 1,009.7 Million in joint battery activities with Sweden-based Northvolt AB
In October 2018, Volkswagen AG acquired MAN Energy Solutions SE and all shares in Renk AG from MAN SE
In December 2018, Volkswagen Group acquired 75.1% majority stake in “WirelessCar” from Volvo information Technology AB
In Europe/other, the company sold 4.7 Million vehicles (+0.2 %). Sales revenue amounted to €143.1 Billion or US$ 142.8 Billion.
In North America, the group sold 0.9 Million vehicles, which is a decline of 6.8% Year-on-Year. Sales revenue of US$ 37.7 Billion was on a level with the previous year.
In the markets in South America, the company increased unit sales by 13.2% to 0.6 Million vehicles. Volume and mix improvements increased sales revenue by 4.2% to US$ 11.6 Billion.
In the Asia Pacific markets – including the Chinese joint ventures – the company sold a total of 4.5 Million vehicles in 2018. Sales revenue rose by 10.3% to US$ 48.4 Billion due to higher volumes and improvements in the components business at fully consolidated companies.
Volkswagen is investing in the future
- Volkswagen announced a plan to spend around €44 billion (US$ 49.3 Billion) on e-mobility, autonomous driving, new mobility services, and digitalization in vehicles and at plants through 2023
- The company also focuses on further improvement in earnings to secure the financial basis for the significant expenditure on Volkswagen’s future viability
- The group majorly invested in electric and battery technology, signalling its intention to confront start-ups like Tesla, Inc. that have taken the lead in the emerging market for electric cars
- The company announced plans to build 22 Million electric cars across its brands by 2028, which is a sharp increase from an earlier estimate of 15 Million
Goals and Strategies:
With the future program TOGETHER – Strategy 2025 announced in 2016 – the company aims to make Volkswagen Group more focused, innovative, efficient, customer-oriented, sustainable, and systematically geared towards generating profitable growth.